Contents

Preface

Acknowledgments

About the Author

CHAPTER 1

What Is International Corporate Finance?

The Uneven Reach of Globalization

The Rise of the Multinational Corporation

What Is Different about International Corporate Finance?

Risks in the Wonderland of International Finance

Internationalization and the Locus of the Finance Function

The International Control Conundrum

Exploiting the Multinational Enterprise System

Summary

Questions for Discussion

References

PART ONE

The International Monetary Environment

CHAPTER 2

Exchange Rates Regimes

Some First Principles about Exchange Rate Determination

World Map of Exchange Rate Regimes: The Flexibility × Convertibility Space

Floating Exchange Rates

Stabilized or Pegged Exchange Rates

Controlled Exchange Rates

Summary

Appendix 2A: The Purchasing Power Parity Hypothesis

Questions for Discussion

Problems

References

CHAPTER 3

Yesterday and Yesteryear: A Brief History of the International Monetary System

Chronology of the International Monetary System

The Gold Standard (1878–1914, 1925–1931)

The Bretton Woods System (1944–1971)

Managed Floating Exchange Rates (1973–)

European Monetary System and the European Currency Unit (1979–1999)

Emerging Markets Currency Regimes and Crises

European Monetary Union and the Birth of the Euro (1999–Present)

Today and Tomorrow: The Current Map of Exchange Rates

Summary

Questions for Discussion

Problems

References

CHAPTER 4

The Balance of Payments

Fundamentals of Balance of International Payments Accounting ...

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